New Delhi: For promoting design-led manufacturing, the Department of Telecommunications (DoT) is inviting applications from Design-led manufacturers as well as others, for availing incentives under the Production Linked Incentive (PLI) Scheme for five years commencing from April 1, 2022.
Interested eligible applicants can start the registration process for the Scheme from June 21, 2022, at https://www.pli-telecom.udyamimitra.in. The application window shall be open for 30 days i.e. up to 20th July 2022. These applications are invited for the balance fund of more than Rs. 4000 crores.
“This will give a boost to manufacturing of telecom and networking products to develop 5G ecosystem for India,” the Union Ministry of Communications stated here today.
Investments made by successful applicants in India from April 1, 2022, onwards and up to Financial Year (FY) 2025-2026 shall be eligible for the incentives, subject to qualifying incremental annual thresholds.
The Scheme is open to both MSME and Non-MSME Companies including Domestic and Global Companies. The applications from design-led manufacturers shall be prioritized over other manufacturers while shortlisting.
The design-led manufacturing is primarily aimed to support efforts for designing telecom products in India. It will recognize and encourage R&D-driven manufacturing in the country to enhance its contribution to the global value chain as envisaged in the National Digital Communication Policy, 2018.
Applicants will have to satisfy the minimum Global Revenue criteria to be eligible under the Scheme. The company may decide to invest in single or multiple eligible products. The Scheme stipulates a minimum investment threshold of Rs. 10 crores for MSME and Rs. 100 crores for non-MSME applicants. Land and building costs will not be counted as investments. Eligibility shall be further subject to Incremental Sales of Manufactured Goods (covered under Scheme Target Segments) over the base year (FY2019-20). The allocation for MSME has been enhanced from Rs. 1000 crores to Rs. 2500 crores.
It may be mentioned that with the objective to build a strong ecosystem for 5G, the Union Budget 2022-23 proposed to launch a Scheme for design-led manufacturing as part of the existing PLI Scheme.
After consultations with stakeholders, the Guidelines for the PLI Scheme for Telecom & Networking Products have been amended to introduce the Design-led Manufacturing with additional incentive rates.
Further, DoT based on feedback from stakeholders including the selected PLI applicants has decided to extend the existing PLI Scheme by one year. The existing PLI beneficiaries will be given an option to choose the financial year 2021-22 or financial year 2022-23 as the first year of incentives.
The DoT has also approved the addition of 11 new telecom and networking products to the existing list, based on suggestions from the stakeholders.
The DoT had notified the PLI Scheme on February 24, 2021, with a financial outlay of Rs. 12,195 crores. A total of 31 companies, comprising 16 MSMEs and 15 Non-MSMEs including 8 Domestic and 7 Global companies were given approval on October 14, 2021.
– global bihari bureau
